Masayoshi Son's strategic moves propel SoftBank to expected $373 billion net income

SoftBank Group Corp. is expected to report a net income of ¥373 billion ($2.5 billion) for the three months ended December, marking its first profit in over a year. This is largely due to a gain on its stake in T-Mobile USA Inc. and rising valuations for startups in its Vision Fund portfolio. The Vision Fund is likely to report its largest profit, ¥111 billion, since June 2021. SoftBank's net asset value (NAV), boosted by a more than 40% rally in Arm Holdings Plc shares since it went public, is likely to have topped $121 billion, its highest in almost two years.

However, there remains skepticism about SoftBank’s portfolio of privately-held startups in its two Vision Funds. The second Vision Fund, funded entirely by SoftBank and Son personally, is mired in losses after a series of markdowns enforced by a tumultuous time for tech shares. SoftBank’s own stock is down more than 35 percent from its peak in 2021, while it trades at a discount of about 50 percent to its NAV. Some analysts also warn of a potential bubble forming in the recent upward climb in Arm’s shares.

Key takeaways

SoftBank Group Corp. is expected to report a strong quarter with a net income of ¥373 billion ($2.5 billion), marking its first profit in over a year.
The profit is largely due to a gain on its stake in T-Mobile USA Inc. and rising valuations for startups in its Vision Fund portfolio.
Arm Holdings Plc, SoftBank's most prized holding, has rallied more than 40 percent since it went public in New York last year, contributing to SoftBank’s net asset value.
Despite the positive outlook, skepticism remains about SoftBank’s portfolio of privately-held startups in its two Vision Funds, with the second Vision Fund mired in losses after a series of markdowns.

Masayoshi Son's strategic moves propel SoftBank to expected $373 billion net income | Mint

Key takeaways

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